TIXT Overview

Acquisition Overview: TELUS Corporation has successfully acquired 100% of TELUS Digital for approximately US$539 million, enhancing its position as a leader in AI-powered digital customer experiences and SaaS transformation across various sectors.

Growth and Efficiency Expectations: The integration of TELUS Digital is anticipated to drive significant growth in telecommunications, health, agriculture, and consumer goods, with expected annual operational efficiencies generating around $150 million.

Shareholder Approval and Consideration: The acquisition was overwhelmingly approved by TELUS Digital shareholders, with various options for consideration including cash and TELUS shares, leading to a final distribution of cash and shares to shareholders.

Delisting and Future Plans: Following the acquisition, TELUS Digital's subordinate voting shares will be delisted from stock exchanges, and TELUS will file an early warning report as it now fully owns TELUS Digital.

Meeting Results: TELUS International held a special meeting on October 27, 2025, where shareholders approved a plan of arrangement with TELUS Corporation, with 99.99% of votes in favor.

Voting Participation: A total of 245,561,589 shares were represented at the meeting, accounting for 88.10% of the issued shares, with 100% of Multiple Voting Shares and 73.82% of Subordinate Voting Shares participating.

Completion Timeline: The arrangement is expected to be finalized around October 31, 2025, pending customary closing conditions and approval from the Supreme Court of British Columbia.

Company Overview: TELUS Digital focuses on enhancing digital customer experiences and offers a range of services including AI solutions, cloud services, and customer experience management, while emphasizing responsible technology deployment.

Shareholder Vote Recommendation: TELUS Digital's Special Committee recommends shareholders vote in favor of the proposed arrangement with TELUS Corporation, which offers US$4.50 per share, representing significant premiums over previous stock prices.

Voting Details and Deadlines: The proxy voting deadline is October 23, 2025, and the Special Meeting is scheduled for October 27, 2025, with options for virtual participation and various methods for shareholders to cast their votes.

Voting Assistance and Deadlines: Shareholders of TELUS Digital can contact Laurel Hill Advisory Group for assistance with voting. The deadline for consideration elections is October 22, 2025, and the proxy voting deadline is October 23, 2025, both at 9:00 a.m. Vancouver time.

Impact of Canada Post Strike: A Canada Post labor strike may delay the postal delivery of management materials for the Special Meeting scheduled for October 27, 2025. Shareholders are encouraged to access materials electronically through various online platforms.

Consideration Election Options: Shareholders can choose between three forms of consideration for their TELUS Digital shares: cash, TELUS shares, or a combination of both, with specific deadlines for submitting their election preferences.

Forward-Looking Statements and Risks: The announcement includes forward-looking statements regarding the transaction with TELUS, highlighting potential risks and uncertainties that could affect the expected benefits and completion of the deal.

Launch of Fuel iX Fortify: TELUS Digital has introduced Fuel iX Fortify, an automated red-teaming application designed to help enterprises identify vulnerabilities in generative AI systems through advanced adversarial simulations, making it accessible for both technical and non-technical users.

Importance of AI Security: With a significant shortage of cybersecurity professionals, Fuel iX Fortify addresses the growing safety and security risks associated with generative AI by automating testing processes, enabling organizations to proactively mitigate risks and ensure compliance before launching AI applications.

Recognition in CXM Services: TELUS Digital has been named a Leader in the Everest Group Customer Experience Management (CXM) Services PEAK Matrix® Assessment for the seventh consecutive year, being one of only five companies recognized out of 48 assessed providers.

Innovative AI Solutions: The company’s proprietary Fuel iX™ platform, which includes tools like Agent Trainer and Agent Assist, enhances customer support and agent performance, while its Agentic AI Accelerator program focuses on identifying impactful use cases for AI in customer experience.

Global Workforce and Expertise: With over 1,300 AI consultants and engineers, TELUS Digital leverages a diverse delivery footprint across more than 30 countries to provide secure and efficient customer experiences, driving business growth and reducing costs.

Commitment to Innovation: TELUS Digital emphasizes continuous improvement and innovation in its services, aiming to enhance client relationships and operational expertise, as highlighted by positive client feedback in the Everest Group assessment.